‘Sydney boom is over’ as buyers start to gain upper hand: Domain Group

The Domain Group House Price Report for the September quarter released on Thursday confirms what auction clearance rate data has been indicating: the city has experienced the slowest rate of price growth since March 2014, at just 3.2 per cent.

After watching prices soar 8.4 per cent in the June quarter, buyers will be relieved to see that the market is finally cooling.

The Sydney property boom appears to be over, with growth slowing markedly over the September quarter. Photo: Rob Homer

The growth in unit values also slowed markedly, increasing just 1.5 per cent to $673,182, compared to 7.4 per cent in June.

Domain Group senior economist Andrew Wilson said this was “clearly a sign that the Sydney boom is over”.

“This gives buyers more time to assess the market and make better decisions.”Shane Oliver, AMP Capital

He said the clampdown on investor lending by the Australian Prudential Regulation Authority had taken some heat out of the market.

“Nothing will slow a market more than higher interest rates and the enthusiasm of a bullish market has now started to wane,” he said.

Sydney’s median house price is now sitting at $1,032,422 – up 21.7 per cent over the past 12 months.